Exam 7: Global Markets in Action

If a government imposes a quota on imports of a popular doll, the price of the doll in the country will ________ and the quantity purchased in the country will ________.

When the United States imposes an import quota on a good, the amount of the ________ in U.S. consumer surplus is ________ the amount of the ________ in U.S. producer surplus.

Based on the table below, at what world price would the country export the good?

Which of the following is a TRUE statement?

During 2005-2006 Europe imported more than $70 million worth of U.S. long-grain rice. In 2006, the European Union threatened to restrict imports of long-grain rice because traces of genetically modified rice were found mixed in to commercial supplies. What would NOT be an effect in the European rice market if U.S. imports were banned?

It is possible for the United States to compete against cheap foreign labor because expensive domestic workers

Which of the following statements is true?

Between August 2007 and July 2008, Brazil exported more than 3.5 billion pounds of coffee to the rest of the world. This fact means that

The (false) idea that an industry should be protected because of learning-by-doing until it is large enough to compete successfully in world markets is the ________ argument for protection.

Which of the following is correct?

Discuss reasons why we see trade restrictions. Are any of these reasons valid?

The average tariff rate imposed by the United States on imported goods

U.S. producer surplus ________ when the United States imports a good and U.S. producer surplus ________ when the United States exports a good.

In 2006, the European Union (EU) threatened to ban imports of long-grain rice because traces of genetically modified rice were found mixed in to commercial supplies. Instead of a ban, suppose the EU placed a tariff on the import of long-grain rice. Which of the following would be an outcome of this tariff?

How does a tariff affect the domestic price of the import, the domestic consumption, the domestic production, and the quantity imported?

A tariff is

Which of the following is an explanation for the existence of trade restrictions?

If the United States imposes a tariff on $1 per imported shirt, the tariff will

Compared to the situation before international trade, after the United States imports a good production in the United States ________ and consumption in the United States ________.

The infant industry argument is based on the idea of